Naver Financial Corp., the fintech arm of South Korea’s largest internet portal, is in advanced discussions to acquire Dunamu Inc. through a comprehensive stock swap that would give the company control of the country’s dominant cryptocurrency exchange Upbit.
The proposed transaction would make Dunamu a wholly-owned subsidiary of Naver Financial, according to people familiar with the matter. Naver shares surged over 7% to 246,000 won ($175) following reports of the potential acquisition, though both companies have denied finalizing any agreement while acknowledging ongoing discussions.
Upbit ranks as South Korea’s largest crypto exchange and the fourth-largest globally by trading volume, handling the majority of the country’s digital asset transactions. The deal would combine Naver Financial’s payment infrastructure, which processes 80 trillion won ($60 billion) annually, with Upbit’s crypto trading dominance.
The timing coincides with South Korea’s regulatory push toward won-denominated stablecoins. The Financial Services Commission plans to introduce stablecoin legislation in October 2025, while eight major banks are developing their own won-pegged stablecoin for launch by 2026.
However, Upbit’s market share has declined from above 80% to 50.6% in September as competition from rival Bithumb intensifies. The acquisition, if completed, would create what industry observers describe as a financial “super app” spanning payments, e-commerce, and cryptocurrency trading, though regulatory approval remains uncertain.
Critics have previously raised monopoly concerns about Dunamu’s market dominance, suggesting potential regulatory scrutiny of any consolidation move.
